The Board of Directors proposes to the AGM that SEK 393.1 (658.9) million, which corresponds to SEK 2.84 (4.76) per share, is distributed to shareholders. This is according to the new dividend policy, as communicated in March 2017.

Key data

SEK m

Q4 2017

Q4 2016

∆

Jan-Dec 2017

Jan-Dec 2016

∆

Revenue

1 256,4

1 118,5

12%

4 716,5

4 117,3

15%

Gross profit

903,0

830,6

9%

3 419,4

3 078,0

11%

Operating income (EBIT)

218,4

265,1

-18%

882,2

946,4

-7%

EBIT margin

17,4%

23,7%

-6%

18,7%

23,0%

-4%

Net income

198,9

243,6

-18%

786,5

878,0

-10%

Earnings per share (SEK)

1,44

1,76

-18%

5,68

6,34

-10%

Operating cash flow

278,9

332,2

-16%

946,7

1 168,5

-19%

Casino revenue

867,3

823,7

5%

3 437,9

2 907,8

18%

Sportsbook gross turnover

5 965,4

6 117,7

-2%

23 117,5

24 392,1

-5%

Sportsbook revenue

359,3

264,4

36%

1 140,3

1 080,4

6%

Sportsbook margin after free bets

8,2%

6,6%

6,9%

6,5%

Deposits

4 362,4

3 947,1

11%

16 308,0

14 457,6

13%

Active customers

615 499

573 277

7%

Message from the CEO, Pontus Lindwall:

"Revenue for the fourth quarter was SEK 1,256.4 (1,118.5) million, an increase by 12 percent compared to the same quarter 2016. The growth was driven by sportsbook, where we saw a high margin of 8.2 percent and growth in gross turnover excluding currency effects. The growth indicates that Betsson's new mobile web sportsbook, which was launched on core brands during the quarter, has been well received by customers so far. Casino revenue growth was strong in region Western Europe, but the region Nordics showed a decline in Casino due to strong competition.

Operational income for the quarter was SEK 218.4 (265.1) million, a decline by 18 percent compared to the same quarter 2016. Increased marketing spend, currency effects and negative contribution from acquired companies had a negative impact on earnings.

Actions to improve business
We have identified and started to implement a number of improvements on both the product and the marketing side. The launch of the new front-end system for Casino and Sportsbook on desktop and apps should be completed during 2018. Betsson will focus marketing spend on key markets with the ambition to achieve a higher return on investment. As an example, we have scaled back on marketing volumes for the UK.

During the first quarter 2018, Betsson restructured the operations. The new flatter organisation will enable the Company to work more efficiently.

In order to ensure that the operational companies owned by Betsson AB lead the way within responsible gaming, Betsson AB ordered an independent review in December 2017. The report recognised that responsible gaming is taken seriously at Betsson and also offers players a wide selection of responsible gaming tools, but it also pointed out some potential enhancements to improve work further within this area. Actions are in place and the results will be followed up closely by Betsson AB management and the Board of Directors, and also by reporting KPI's in the interim reports going forward.

When I stepped in as CEO in September, my first action was to analyse the situation the company was in and together with management set a plan on how to bring Betsson back to higher growth and earnings. It will take some time until I am satisfied, but we are systematically implementing actions to improve performance and expect to see results towards the end of the year."

Information on the presentation
Betsson invites media, analysts and investors to Betsson's office at Regeringsgatan 28, Stockholm, Sweden, on Thursday, 8 February, 2018 at 09:00 CET, for the presentation of the interim report with CEO Pontus Lindwall and CFO Kaaren Hilsen. The presentation will be held in English and followed by a questions and answers session. It is also availa-ble via webcast and conference call.

This information is information that Betsson AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.30 CET on 8 February 2018.